Audit Report June 2016

Independent Auditors Report
To The Shareholders of
Beximco Pharmaceuticals Limited
Report on the Financial Statements

We have audited the accompanying financial statements of Beximco Pharmaceuticals Limited, which comprises the Statement of
Financial Position as at 30 June 2016, the Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in
Equity and Statement of Cash Flows for the period from 01 January 2015 to 30 June 2016 (18 months) then ended and a summary of
significant accounting policies and other relevant explanatory notes.
Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards (IFRSs), Bangladesh Financial Reporting Standards (BFRSs), and Bangladesh Accounting Standards
(BASs), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such
internal control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
International Standards on Auditing (ISA) and Bangladesh Standards on Auditing (BSA). Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstance,
but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 30 June 2016, and of its
financial performance and its cash flows for the period of 18 months then ended in accordance with International Financial Reporting
Standards (IFRSs) and Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994, the Securities and Exchange Rules
1987 and other applicable laws and regulations.
Other matter
Financial Statements of the Company for the year ended 31 December 2015 and period ended 30 June 2016 have separately been
audited by us. Now the Company is required to follow accounting year as July to June as per Finance Act 2015. For this purpose,
separately audited financial statements have been compiled as per directives of The Bangladesh Securities and Exchange Commission
(BSEC).
Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 1994 and the Securities and Exchange Rules 1987, we report that:
(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit and made due verification thereof;
(b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our
examination of these books;
(c) the Statement of Financial Position ( Balance Sheet) and Statement of Profit or Loss and other Comprehensive Income (Profit and
Loss Account) dealt with by the report are in agreement with the books of account; and
(d) the expenditure incurred was for the purposes of the companys business.
Dhaka M.J. Abedin & Co.

6 October, 2016 Chartered Accountants
Page 1
Audit Report 2016 I 1
Statement of Financial Position
As at June 30, 2016
Amount in Taka

Notes June 30, 2016 December 31, 2014

ASSETS
Non-Current Assets 22,620,900,165 20,634,246,854
Property, Plant and Equipment- Carrying Value 4 (a) 22,235,892,802 20,393,278,737
Intangible Assets 3.3 & 5 380,260,529 235,208,190
Investment in Shares 6 (a) 4,746,834 5,759,927

Current Assets 8,528,007,810 8,366,279,107
Inventories 7 2,770,331,675 2,493,657,338
Spares & Supplies 8 614,606,112 554,183,898
Accounts Receivable 9 1,680,606,796 1,397,498,648
Loans, Advances and Deposits 10 1,802,304,185 1,223,673,153
Short Term Investment 11 1,439,037,813 2,475,026,831
Cash and Cash Equivalents 12 221,121,229 222,239,239
TOTAL ASSETS 31,148,907,975 29,000,525,961

EQUITY AND LIABILITIES
Shareholders Equity 23,059,412,409 20,920,185,325
Issued Share Capital 13 3,862,442,340 3,678,516,520
Share Premium 5,269,474,690 5,269,474,690
Excess of Issue Price over Face Value of GDRs 14 1,689,636,958 1,689,636,958
Capital Reserve on Merger 294,950,950 294,950,950
Revaluation Surplus 4(b) 1,225,100,042 1,299,220,315
Fair Value Gain on Investment 1,295,558 2,308,651
Retained Earnings 10,716,511,871 8,686,077,241

Non-Current Liabilities 5,106,928,058 3,372,593,206
Long Term Borrowings-Net off Current Maturity (Secured) 15 2,366,006,599 901,709,327
Liability for Gratuity and WPPF & Welfare Funds 16 984,198,459 741,522,518
Deferred Tax Liability 17 1,756,723,000 1,729,361,361

Current Liabilities and Provisions 2,982,567,508 4,707,747,430
Short Term Borrowings (Secured) 18 (a) 1,109,644,270 3,153,121,293
Long Term Borrowings-Current Maturity (Secured) 19 920,388,531 663,838,072
Creditors and Other Payables 20 453,828,612 357,710,839
Accrued Expenses 21 151,086,775 164,283,115
Dividend Payable 385,507 454,720
Income Tax Payable 22 347,233,813 368,339,391

TOTAL EQUITY AND LIABILITIES 31,148,907,975 29,000,525,961

The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on 6 October, 2016 and signed for and on behalf of the Board :

Salman F Rahman Nazmul Hassan Ali Nawaz

Vice Chairman Managing Director Chief Financial Officer
Per our report of even date.

Dhaka M. J. Abedin & Co.
2Page
I Audit
2 Report 2016
Statement of Profit or Loss and Other Comprehensive Income
For 18 Months Period ended 30th June 2016

Amount in Taka
Notes January 2015 - January - January - January -

June 2016 June 2016 December 2015 December 2014
(18 Months) (6 Months) (12 Months) (12 Months)

Net Sales Revenue 23 20,034,502,592 7,068,995,719 12,965,506,873 11,206,885,677
Cost of Goods Sold 24 (10,800,317,358) (3,835,149,654) (6,965,167,704) (6,102,694,323)
Gross Profit 9,234,185,234 3,233,846,065 6,000,339,169 5,104,191,354

Operating Expenses (4,775,931,931) (1,626,871,236) (3,149,060,695) (2,686,014,518)
Administrative Expenses 27 (689,337,921) (240,980,804) (448,357,117) (398,762,237)
Selling, Marketing and Distribution Expenses 28 (4,086,594,010) (1,385,890,432) (2,700,703,578) (2,287,252,281)
Profit from Operations 4,458,253,303 1,606,974,829 2,851,278,474 2,418,176,836

Other Income 29 412,658,923 100,980,597 311,678,326 521,171,647
Finance Cost 30 (1,030,182,401) (321,212,167) (708,970,234) (724,314,963)
Profit Before Contribution to WPPF & Welfare Funds 3,840,729,825 1,386,743,259 2,453,986,566 2,215,033,520

Contribution to WPPF & Welfare Funds 31 (182,891,896) (66,035,393) (116,856,503) (105,477,787)

Profit Before Tax 3,657,837,929 1,320,707,866 2,337,130,063 2,109,555,733

Income Tax Expenses 32 (709,784,075) (326,938,528) (382,845,547) (581,258,160)
Current Tax (736,140,227) (310,173,315) (425,966,912) (436,782,844)
Deferred Tax Income / (Expense) 26,356,152 (16,765,213) 43,121,365 (144,475,316)
Profit after Tax for the Period 2,948,053,854 993,769,338 1,954,284,516 1,528,297,573
Other Comprehensive Income - Fair Value Gain /
(Loss) on Investment in Listed Shares 6 (c) (1,013,093) (661,955) (351,138) 967,032
Total Comprehensive Income for the Period 2,947,040,761 993,107,383 1,953,933,378 1,529,264,605

Earnings Per Share (EPS) / Adjusted EPS 33 7.63 2.57 5.06 3.96

Number of Shares used to compute EPS 386,244,234 386,244,234 386,244,234 386,244,234


Salman F Rahman
Nazmul Hassan Ali Nawaz
Vice Chairman Managing Director
Chief Financial Officer


Page 3 Audit Report 2016 I 3

Statement of Changes in Equity
For 18 Months Period ended January 1, 2015 - June 30, 2016 Amount in Taka

Share Share Excess of Issue Capital Revaluation Fair Value Retained Total
Capital Premium Price over Face Reserve on Surplus Gain on Earnings
Value of GDRs Merger Investment
Balance as on
January 01, 2015 3,678,516,520 5,269,474,690 1,689,636,958 294,950,950 1,299,220,315 2,308,651 8,686,077,241 20,920,185,325
Total Comprehensive
Income for the period :
Profit for the Period - - - - - - 2,948,053,854 2,948,053,854
Other Comprehensive Income/(Loss) - - - - - (1,013,093) - (1,013,093)
Transactions with
the Shareholders:
Cash Dividend- 2014 & 2015 (Interim) - - - - - - (754,095,886) (754,095,886)
Stock Dividend for 2014 183,925,820 - - - - - (183,925,820) -
Adjustment for Depreciation
on Revalued Assets - - - - (20,402,482) - 20,402,482 -
Adjustment for Deferred Tax
on Revalued Assets - - - - (53,717,791) - - (53,717,791)
Balance as on
June 30, 2016 3,862,442,340 5,269,474,690 1,689,636,958 294,950,950 1,225,100,042 1,295,558 10,716,511,871 23,059,412,409
Number of Shares 386,244,234
Net Asset Value (NAV) Per Share 59.70
For the Year ended January - December 2014

Balance as on
January 01, 2014 3,503,349,070 5,269,474,690 1,689,636,958 294,950,950 1,349,578,805 1,341,619 7,667,220,373 19,775,552,465
Total Comprehensive
Income for the period :
Profit for the year - - - - - - 1,528,297,573 1,528,297,573
Other Comprehensive Income - - - - - 967,032 - 967,032
Transactions with
the Shareholders:
Cash Dividend for 2013 (350,334,907) (350,334,907)
Stock Dividend for 2013 175,167,450 - - - - - (175,167,450) -
Adjustment for Depreciation
on Revalued Assets - - - - (16,061,652) - 16,061,652 -
Adjustment for Deferred Tax
on Revalued Assets - - - - (34,296,838) - - (34,296,838)
Balance as on
December 31, 2014 3,678,516,520 5,269,474,690 1,689,636,958 294,950,950 1,299,220,315 2,308,651 8,686,077,241 20,920,185,325
Number of Shares 367,851,652
Net Asset Value (NAV) Per Share 56.87





4 I Audit Report 2016
Page 4
Statement of Cash Flows
For 18 Months Period ended 30th June 2016
Amount in Taka

January 2015 - January -
June 2016 December 2014
(18 Months) (12 Months)
Cash Flows from Operating Activities :

Receipts from Customers and Others 19,756,621,890 11,085,037,894
Payments to Suppliers and Employees (15,204,763,705) (8,240,584,352)
Cash Generated from Operations 4,551,858,185 2,844,453,542

Interest Paid (1,030,182,401) (724,314,963)
Interest Received 404,847,333 489,970,647
Income Tax Paid (757,245,805) (394,128,824)
Net Cash Generated from Operating Activities 3,169,277,312 2,215,980,402
Cash Flows from Investing Activities :

Acquisition of Property, Plant and Equipment (2,975,250,144) (2,778,797,453)
Intangible Assets (165,351,713) (56,321,506)
Disposal of Property, Plant and Equipment 9,583,953 7,615,792
Dividend Received 1,427,955 1,427,955
Decrease in Short Term Investment 1,035,989,018 551,356,330
Net Cash Used in Investing Activities (2,093,600,931) (2,274,718,882)

Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings- Note 18 (c) 55,519,429 (340,756,861)
Net Increase/(Decrease) in Short Term Borrowings- Note 18 (c) (378,148,721) 376,855,168
Dividend Paid (754,165,099) (350,853,554)
Net Cash Generated from Financing Activities (1,076,794,391) (314,755,247)
Increase/(Decrease) in Cash and Cash Equivalents (1,118,010) (373,493,727)
Cash and Cash Equivalents at Beginning of Period 222,239,239 595,732,966
Cash and Cash Equivalents at End of Period 221,121,229 222,239,239

Net Operating Cash Flow Per Share 8.21 6.02

Number of Shares used to compute Net Operating Cash Flow Per Share 386,244,234 367,851,652






Page 5
M. J. Abedin & Co. CONTINUATION SHEET

Notes to the Financial Statements
As at and for the period ended 30 June 2016
1. Reporting entity
1.1 About the company

Beximco Pharmaceuticals Limited (BPL/ the Company) was incorporated as a public limited company in Bangladesh in
1976. It commenced its manufacturing operation in 1980. The company was listed with Dhaka Stock Exchange in 1985
and with Chittagong Stock Exchange on its debut in 1995. In 2005, BPL took over Beximco Infusions Ltd., a listed company
of the Beximco Group engaged in manufacturing and marketing of intravenous fluids and got enlisted with the Alternative
Investment Market (AIM) of the London Stock Exchange through issuance of Global Depository Receipts (GDRs). Shares
of the Company are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh and its GDRs in AIM of the London
Stock Exchange.
The registered office of the company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units
are located at Tongi and Kaliakoir of Gazipur district vicinities close to the capital city Dhaka.
1.2 Nature of Business

The company is engaged in manufacturing and marketing of generic pharmaceuticals formulation products including life
saving intravenous fluids, Therapeutic Nutrition Products and Active Pharmaceutical Ingredients (APIs). Products of the
company are sold in domestic and international markets. The company also provides contract manufacturing services.
2. Basis of Preparation of Financial Statements
2.1 Basis of Measurement

The financial statements have been prepared on Historical Cost Basis except land, building and plant & machinery being
revalued on 31 December 2008, investment in shares of listed company being valued at year end quoted price and the
cash flow statement being prepared on cash basis.
2.2 Statement of Compliance

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994, the
Securities & Exchange Rules 1987, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant
local laws as applicable and in accordance with the International Financial Reporting Standards (IFRSs), and Bangladesh
Financial Reporting Standards (BFRSs).
2.3 Presentation of Financial Statements

The presentation of the financial statements is in accordance with the guidelines provided
by IAS 1: Presentation of Financial Statements.
The financial statements comprises of:

(a) a Statement of Financial Position as at the end of the period ended 30 June 2016 ;
(b) a Statement of Profit or Loss and Other Comprehensive Income for the period 01 January 2015 to 30 June 2016 (18
months);
(c) a Statement of Changes in Equity for the period 01 January 2015 to 30 June 2016 (18 months);
(d) a Statement of Cash Flows for the period 01 January 2015 to 30 June 2016 (18 months); and
(e) notes, comprising summary of significant accounting policies and explanatory information.
2.4 Reporting Period & Comparative Information

The financial statements have been prepared for 18 (eighteen) months (from 1st January 2015 to 30th June 2016) as per
directive of Bangladesh Securities and Exchange Commission (BSEC) to facilitate the adoption of reporting period of July
to June in place of existing reporting period of calendar year (January to December) in compliance to the requirement of
the National Board of Revenue (NBR) to follow uniform financial year.
Therefore, the financial statements for the period of 18 months (01.01.2015 to 30.06.2016) are not entirely comparable
with the comparative of 12 months (01.01.2014 to 31.12.2014).
Page 6
2.5 Authorisation for issue

The financial statements have been authorised for issue by the Board of Directors 6 October, 2016.
2.6 Functional and Presentation Currency

The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the companys functional
currency. All financial information presented has been rounded off to the nearest Taka except where indicated otherwise.
2.7 Use of Estimates and Judgments

The preparation of financial statements in conformity with the IFRSs including IASs require management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses, and for contingent assets and liabilities that require disclosure, during and at the
date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision of accounting estimates are recognized in the period in which the estimate is revised and in any future
periods affected.
In particular, the key areas of estimation, uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation,
accrued expenses, others payable and deferred liability for gratuity.
3. Significant Accounting Policies

The accounting principles and policies in respect of material items of financial statements set out below have been applied
consistently to all periods presented in these financial statements.
3.1 Revenue Recognition

In compliance with the requirements of IAS 18: Revenue, revenue receipts from customers against sales is recognized
when products are dispatched to customers, that is, when the significant risk and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can
be estimated reliably, and there is no continuing management involvement with the goods.
Revenue from sales is exclusive of VAT.
Cash dividend income on investment in shares is recognized on approval of said dividend in the annual general meeting.
Stock dividend income (Bonus Shares) is not considered as revenue.
3.2 Property, Plant and Equipment
3.2.1 Recognition and Measurement

This has been stated at cost or revalued amount less accumulated depreciation in compliance with the requirements of
IAS 16: Property, Plant and Equipment. The cost of acquisition of an asset comprises its purchase price and any directly
attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties and
non-refundable taxes.
3.2.2 Maintenance Activities

The company incurs maintenance costs for all its major items of property, plant and equipment. Repair and maintenance
costs are charged as expenses when incurred.
3.2.3 Depreciation
Depreciation is provided to amortise the cost of the assets after commissioning, over the period of their expected useful
lives, in accordance with the provisions of IAS 16: Property, Plant and Equipment. Depreciation is provided at the following
rates on reducing balance basis:
Building and Other Construction 2 %- 10%

Plant and Machinery 5% -15%
Furniture & Fixtures 10%
Transport & Vehicle 20%
Office Equipment 10% -15%
Page 7
3.2.4 Retirements and Disposals

On disposal of fixed assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal is
reflected in the income statement, which is determined with reference to the net book value of the assets and net sales
proceeds.
3.3 Intangible Assets

Intangible assets are stated at cost less provisions for amortization and impairments. Licenses, patents, know-how and
marketing rights acquired are amortized over their estimated useful lives, using the straight line basis, from the time
they are available for use. The cost of acquiring and developing computer software for internal use and internet sites for
external use are capitalized as intangible fixed assets where the software or site supports a significant business system
and the expenditure leads to the creation of a durable asset. Also, the research and development expenditures that are
definite to yield benefit to the company are capitalized.
3.4 Leased Assets

In compliance with the IAS 17: Leases, cost of assets acquired under finance lease along with related obligation has
been accounted for as assets and liabilities respectively of the company, and the interest element has been charged as
expenses. Lease payments made under finance leases are apportioned between the finance expenses and the reduction
of the outstanding liability.
3.5 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
3.5.1 Financial assets

Financial assets of the company include cash and cash equivalents, accounts receivable and other receivables. The
company initially recognizes receivable on the date they are originated. All others financial assets are recognized initially
on the date at which the company becomes a party to the contractual provisions of the transaction. The company
derecognizes a financial asset when, and only when the contractual rights or probabilities of receiving the cash flows
from the asset expire or it transfer the rights to receive the contractual cash flows on the financial asset in a transaction
in which substantially all the risk and rewards of ownership of the financial asset are transferred.
3.5.1(a) Accounts Receivable

Accounts receivable are created at original invoice amount less any provisions for doubtful debts. Provisions are made
where there is evidence of a risk of non-payment, taking into account aging, previous experience and general economic
conditions. When an accounts receivable is determined to be uncollected it is written off, firstly against any provision
available and then to the profit and loss account. Subsequent recoveries of amounts previously provided for are credited
to the profit and loss account.
3.5.1(b) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, in transit and with banks on current and deposit accounts which are
held and available for use by the company without any restriction. There is insignificant risk of change in value of the
same.
3.5.1(c) Investment in Shares

Investment in shares of listed company is valued at a price quoted in the stock exchange at year end. Investment in
other shares is valued at cost.
3.5.2 Financial Liability

Financial liabilities are recognized initially on the transaction date at which the company becomes a party to the
contractual provisions of the liability. The company derecognizes a financial liability when its contractual obligations are
discharged or cancelled or expire.
Finance liabilities include payable for expenses, liability for capital expenditure and other current liabilities.
3.6 Impairment
(a) Financial Assets
Accounts receivable and other receivables are assessed at each reporting date to determine whether there is any
objective evidence of impairment. Financial assets are impaired if objective evidence indicates that a loss event has
occurred after the initial recognition of the asset and that the loss event had a negative effects on the estimated future
cash flows of that asset, that can be estimated reliably. Objective evidence that financial assets are impaired can include
default or delinquency by a debtor, indications that a debtor or issuer will enter bankruptcy etc.
Page 8
(b) Non-Financial Assets

An asset is impaired when its carrying amount exceeds its recoverable amount. The company assesses at each reporting
date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates
the recoverable amount of the asset. The recoverable amount of an asset is the higher of its fair value less costs to sell
and its value in use. Carrying amount of the assets is reduced to its recoverable amount by recognizing an impairment
loss if, and only if, the recoverable amount of the asset is less than its carrying amount. Impairment loss is recognized
immediately in profit or loss, unless the asset is carried at revalued amount. Any impairment loss of a revalued asset
shall be treated as a revaluation decrease.
3.7 Inventories
Inventories are carried at the lower of cost and net realizable value as prescribed by IAS 2: Inventories. Cost is determined
on weighted average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of
business in bringing the inventories to their present location and condition. Net realizable value is based on estimated
selling price less any further costs expected to be incurred to make the sale.
3.8 Provisions
A provision is recognized in the statement of financial position when the company has a legal or constructive obligation
as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. Provision is ordinarily measured at the best estimate of
the expenditure required to settle the present obligation at the date of statement of financial position. Where the effect of
time value of money is material, the amount of provision is measured at the present value of the expenditures expected
to be required to settle the obligation.
3.9 Income Tax Expense

Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the Statement of
Comprehensive Income and accounted for in accordance with the requirements of IAS 12: Income Tax.
Current Tax
Current tax is the expected tax payable on the taxable income for the period, and any adjustment to tax payable in
respect of previous years. The company qualifies as a Publicly Traded Company; hence the applicable Tax Rate is
25%.
Deferred Tax
The company has recognized deferred tax using balance sheet method in compliance with the provisions of IAS 12:
Income Taxes. The companys policy of recognition of deferred tax assets/ liabilities is based on temporary differences
(Taxable or deductible) between the carrying amount (Book value) of assets and liabilities for financial reporting purpose
and its tax base, and accordingly, deferred tax income/expenses has been considered to determine net profit after tax
and earnings per shares (EPS).
A deferred tax asset is recognized to the extent that it is probable that future taxable profit will be available, against
which temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to
the extent that it is no longer probable that the related tax benefit will be realized.
3.10 Interest Income

Interest income is recognized on accrual basis.
3.11 Borrowing Cost

Borrowing costs are recognized as expenses in the period in which they are incurred unless capitalization of such is
allowed under IAS 23: Borrowing Costs.
3.12 Employee Benefits

The company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees.
The eligibility is determined according to the terms and conditions set forth in the respective deeds.
The company has accounted for and disclosed employee benefits in compliance with the provisions of IAS 19: Employee
Benefits.
The cost of employee benefits is charged off as revenue expenditure in the period to which the contributions relate.
The companys employee benefits include the following:
Page 9
(a) Defined Contribution Plan (Provident Fund)
The company has a registered provident fund scheme (Defined Contribution Plan) for employees of the company eligible
to be members of the fund in accordance with the rules of the provident fund constituted under an irrevocable trust. All
permanent employees contribute 10% of their basic salary to the provident fund and the company also makes equal
contribution.
The company recognizes contribution to defined contribution plan as an expense when an employee has rendered
services in exchange for such contribution. The legal and constructive obligation is limited to the amount it agrees to
contribute to the fund.
(b) Defined Benefit Plan (Gratuity)
This represents unfunded gratuity scheme for its permanent employees. Employees are entitled to gratuity benefit after
completion of minimum five years of service in the company.
Though no valuation was done to quantify actuarial liabilities as per the IAS 19: Employee Benefits, such valuation in not
likely to yield a result significantly different from the current provision.
(c) Short-term employee benefits
Short-term employee benefits include salaries, bonuses, leave encashment, etc. Obligations for such benefits are
measured on an undiscounted basis and are expensed as the related service is provided.
(d) Contribution to Workers Profit Participation and Welfare Funds
This represents 5% of net profit before tax contributed by the company as per provisions of the Bangladesh Labor
(amendment) Act 2013 and is payable to workers as defined in the said law.
(e) Insurance Scheme
Employees of the company are covered under insurance schemes.
3.13 Share Premium

The Share Premium shall be utilized in accordance with the provisions of the Companies Act, 1994 and as per direction
of the Securities and Exchange Commission in this respect.
3.14 Proposed Dividend

The amount of proposed dividend is not accounted for but disclosed in the notes to the accounts in accordance with the
requirements of the International Accounting Standard (IAS) 1: Presentation of Financial Statements. Also the proposed
dividend is not considered as liability in accordance with the requirement of International Accounting Standard (IAS) 10:
Events After The Reporting Period, because no obligation exists at the time of approval of accounts and recommendation
of dividend by the board of Directors. The Board of Directors in its meeting held on 20 April 2016 while considering the
audited accounts for the year ended on 31st December 2015 recommended 10% cash and 5% stock dividend subject
to approval of the shareholders in the Annual General Meeting scheduled on 4 June 2016. Subsequent to that, the
Bangladesh Securities and Exchange Commission issued directive to hold Annual General Meeting with 18 months
Accounts for first time adoption of the changes in the Accounting Year as required by the Finance Act 2015. Accordingly
the Annual General Meeting of the Company was deferred and the cash dividend proposed was paid to the shareholders
as Interim Dividend. Therefore, the 10% cash dividend which was already paid has been accounted for in the accounts
being reported. The 5% stock dividend and 5% final cash dividend as recommended by the board in its meeting held on
October 6, 2016 while approving the 18 months audited accounts for the period ended on June 30, 2016 has not been
accounted for as per policy.
3.15 Earnings per Share (EPS)

This has been calculated in compliance with the requirements of IAS 33: Earnings Per Share by dividing the basic
earnings by the weighted average number of ordinary shares outstanding during the period.
Page 10

Current Period (January 2015 to June 2016)
The Bonus Shares issued during the year 2014 were treated as if they always had been in issue. Hence, in computing
the Basic EPS of Current Period (January 2015 to June 2016), the total number of shares including the said bonus shares
has been considered as the Weighted Average Number of Shares outstanding during the Current Period (January 2015
to June 2016).
Earlier Year (2014)
The number of shares outstanding before the bonus issue has been adjusted for the proportionate change in the number
of shares outstanding as if the bonus issue had occurred at the beginning of the earliest period reported (2014), and
accordingly, in calculating the adjusted EPS of 2014, the total number of shares including the subsequent bonus issued
in 2015 has been considered as the Weighted Average number of Shares outstanding during the year 2014.
The basis of computation of number of shares as stated above is in line with the provisions of IAS 33: Earning per Share.
The logic behind this basis, as stated in the said IAS is that the bonus Shares are issued to the existing shareholders
without any consideration, and therefore, the number of shares outstanding is increased without an increase in
resources.
Diluted Earnings per Share
No diluted EPS is required to be calculated for the period as there was no scope for dilution during the period under
review.
3.16 Foreign Currency Transactions

Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date.
The monetary assets and liabilities, if any, denominated in foreign currencies at the financial position date are translated
at the applicable rates of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure
in compliance with the provisions of IAS 21: The Effects of Changes in Foreign Exchange Rates.
3.17 Statement of Cash Flows

The Statement of Cash Flow has been prepared in accordance with the requirements of IAS 7: Statement of Cash Flows.
The cash generated from operating activities has been reported using the Direct Method as prescribed by the Securities
and Exchange Rules, 1987 and as the benchmark treatment of IAS 7, whereby major classes of gross cash receipts and
gross cash payments from operating activities are disclosed.
3.18 Events after Reporting Period

Events after the reporting period that provide additional information about the companys position at the date of
Statement of Financial Position or those that indicate that the going concern assumption is not appropriate are reflected
in the financial statements. Events after reporting period that are not adjusting events are disclosed in the notes when
material.
Page 11

4 (a) Property, Plant and Equipment

As on June 30, 2016 Amount in Taka
Building Plant Furniture Transport Office

Particulars Land and Other and and and Equipment Total
Constructions Machinery Fixtures Vehicle

Cost
At January 01, 2015 3,343,741,442 6,410,090,320 10,573,115,701 197,001,369 596,845,504 390,013,667 21,510,808,003
Additions- January 2015 to
June 2016 - 154,933,066 499,981,926 37,334,604 107,098,489 118,553,280 917,901,365
Transferred in & Capitalized - 147,151,810 257,977,765 254,013 - 3,298,860 408,682,448
Disposal during the period - - (7,057,699) (16,946,545) (3,931,886) (9,716,371) (37,652,501)
Cost at June 30, 2016 3,343,741,442 6,712,175,196 11,324,017,693 217,643,441 700,012,107 502,149,436 22,799,739,315

Accumulated Depreciation
At January 01, 2015 - 1,216,063,103 3,582,516,866 79,383,211 292,067,629 255,418,950 5,425,449,759
Depreciation Charged- January
2015 to June 2016 - 241,207,131 735,361,153 18,344,246 92,584,435 36,711,350 1,124,208,315
Adjustment for Assets disposed off - - (6,520,549) (11,988,652) (2,531,542) (8,183,994) (29,224,737)
at June 30, 2016 - 1,457,270,234 4,311,357,470 85,738,805 382,120,522 283,946,306 6,520,433,337
Net Book Value
June 30, 2016 3,343,741,442 5,254,904,962 7,012,660,223 131,904,636 317,891,585 218,203,130 16,279,305,978
Capital Work in Progress 5,956,586,824
Carrying Value as on June 30, 2016 22,235,892,802
Assets include leasehold assets of Tk. 1,277,737,554 at cost and Tk.1,053,077,850 at carrying value.
As on December 31, 2014
Building Plant Furniture Transport Office

Particulars Land and Other and and and Equipment Total
Constructions Machinery Fixtures Vehicle
Cost
At January 01, 2014 3,302,882,482 6,370,758,420 10,034,644,242 173,333,992 548,077,240 358,363,316 20,788,059,692
Addition During the Year 40,858,960 39,331,900 111,420,014 24,240,377 59,392,132 31,650,351 306,893,734
Transferred in & Capitalized - - 427,051,445 - - - 427,051,445
Disposal during the year - - - (573,000) (10,623,868) - (11,196,868)
As on 31 December 2014 3,343,741,442 6,410,090,320 10,573,115,701 197,001,369 596,845,504 390,013,667 21,510,808,003
At January 01, 2014 - 1,052,546,636 3,090,128,096 69,430,902 237,436,147 237,273,060 4,686,814,841
Depreciation for the year - 163,516,467 492,388,770 10,375,309 61,346,435 18,145,890 745,772,871
Adjustment for Assets disposed off - - - (423,000) (6,714,953) - (7,137,953)
As on 31 December, 2014 - 1,216,063,103 3,582,516,866 79,383,211 292,067,629 255,418,950 5,425,449,759
Net Book Value

December 31, 2014 3,343,741,442 5,194,027,217 6,990,598,835 117,618,158 304,777,875 134,594,717 16,085,358,244
Capital Work in Progress 4,307,920,493
Carrying Value as on December 31, 2014 20,393,278,737
Page 12

Capital Work in Progress is arrived at as follows :

Amount in Taka
30 June, 2016 31 December, 2014
Opening Balance at beginning of the period 4,307,920,493 2,263,068,219
Addition- January 2015 to June 2016 2,057,348,779 2,471,903,719
6,365,269,272 4,734,971,938
Transferred & Capitalized (408,682,448) (427,051,445)
Building and Other Constructions (147,151,810) -
Plant & Machinery (257,977,765) (427,051,445)
Furniture & Fixture (254,013) -
Office Equipment (3,298,860) -
Closing balance at end of period 5,956,586,824 4,307,920,493
4 (b). Revaluation Surplus

S.F. Ahmed & Co, Chartered Accountants and Valuers revalued the land, building and plant & machinery of the Company as
of 31 December 2008, following Current cost method. Such revaluation resulted into a revaluation surplus aggregating Tk.
1,711,174,747. Current balance is arrived at as follows:

Adjustment for depreciation on revalued assets (20,402,482) (16,061,652)
Adjustment for Deferred Tax on revalued assets (53,717,791) (34,296,838)
1,225,100,042 1,299,220,315
5. Intangible Assets

This consists of as follows
Balance Addition Amortized Balance
01.01.2015 (Jan 2015 - Jun 2016) (Jan 2015 - Jun 2016) June 30, 2016
Product development, Licensing and
Marketing Rights 230,551,508 74,789,570 (16,713,018) 288,628,060
ERP Project - 90,562,143 - 90,562,143
Other Software 4,656,682 - (3,586,356) 1,070,326
235,208,190 165,351,713 (20,299,374) 380,260,529

6. Investment in Shares
30 June, 2016 31 December, 2014

(a) Investment Details:
(i)) Bangladesh Export Import Co. Ltd. 3,177,384 4,190,477
(ii) Central Depository Bangladesh Ltd. (CDBL) 1,569,450 1,569,450
4,746,834 5,759,927

This is arrived at as follows:
Bangladesh Central Depository

Export Import Co. Ltd. Bangladesh Ltd.

Investment as on January 01, 2015 4,190,477 1,569,450
Fair value gain/(Loss) on investment (1,013,093) -
Investment as on June 30, 2016 Tk. 3,177,384 1,569,450

(b) Number of Shares:

As on January 01, 2015 115,123 571,182
Stock Dividend for 2014 17,268 -
As on June 30, 2016 132,391 571,182
Page 13

(c) Fair Value Gain/(Loss) on Investment

Fair market value of 132,391 shares of Bangladesh Export Import Co. Ltd. 3,177,384
Less Investment at beginning of the period 4,190,477
Fair Value Gain / (Loss) (1,013,093)

(d) The shares of Bangladesh Export Import Co. Ltd. are listed in Dhaka and Chittagong Stock Exchanges. The market value of
each share of Bangladesh Export Import Co. Ltd. on last working day of the period was Tk. 24.00 in Dhaka Stock Exchange Ltd.
and Chittagong Stock Exchange Ltd. Shares of CDBL are not traded.

7. Inventories
Amount in Taka
This consists of as follows : 30 June, 2016 31 December, 2014

Finished Goods 639,923,877 633,692,189
Work in Process 194,155,965 171,815,679
Raw Materials 792,484,516 637,080,994
Packing Materials 459,631,224 424,461,374
Laboratory Chemicals 338,991 550,984
Physician Samples 127,674,561 149,875,483
Materials in Transit 556,122,541 476,180,635
2,770,331,675 2,493,657,338
8. Spares & Supplies

This consists of as follows :
Spares & Accessories 495,625,730 399,537,644
Stock of Stationery 11,624,684 11,284,736
Literature & Promotional Materials 107,355,698 143,361,518
614,606,112 554,183,898
9. Accounts Receivable
This includes receivable of Tk. 107,075,699 equivalent to US$ 1,372,765 as on 30 June 2016 (on 31-12-2014 Tk. 136,834,694
equivalent to US $ 1,763,334) against export sales.

This also includes Tk. 1,430,821,670 due from I & I Services Ltd., who provides distribution service to the Company and a
Related Party. The maximum amount due from that company during the period was Tk. 1,430,821,670 on 30 June, 2016.

The receivables on account of Export sales are fully secured against Letter of Credit while the others are unsecured but
considered good.

No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally
or jointly with any other person.

Page 14

10. Loans, Advances and Deposits

This is unsecured, considered good and consists of as follows :
Amount in Taka

30 June, 2016 31 December, 2014
Clearing & Forwarding 83,654,786 54,354,123

VAT 273,720,987 217,516,529
Claims Receivable 20,242,657 14,620,213
Security Deposit & Earnest Money 26,407,411 27,652,694
Lease Deposit 28,691,017 21,812,942
Capital Expenditure/ Project 97,081,087 50,029,753
Expenses 198,889,697 132,711,063
Bank Guarantee Margin 2,951,066 1,257,096
Advance against Salary 88,981,864 55,699,183
Rent Advance 19,535,002 9,716,674
Motor Cycle 157,814,961 124,010,046
Raw & Packing Material 395,386,302 422,209,729
Prepaid Expenses 322,417,705 21,116,922
Overseas Liaison Office 19,067,068 15,032,617
Others 67,462,575 55,933,569
1,802,304,185 1,223,673,153

(a) The maximum amount due from the employees during the period was Tk. 89,024,168 on 31 May, 2016.
(b) No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally
or jointly with any other person, except as stated above.
(c) No amount was due from any related party.
(d) Prepaid expense includes Tk. 302,987,514 for Insurance premium paid to German Export Credit Agency Euler Hermes
Aktiengesellschaft, Hamburg for gurantee Insurance premium which is an integral part of the overseas loan financing agreement
with BHF-Bank Aktiengesellshaft, Frankfurt, Germany. Part of the premium related to the period of construction of the project shall be
capitalized while the rest shall be charged to expenses over the tenure of the loan.

11. Short Term Investment

This represents the Companys temporary investment with Bangladesh Export Import Company Limited, carrying interest 1% above
bank interest rate. This investment is returnable as and when required by the Company.

12. Cash and Cash Equivalents

This consists of as follows : Amount in Taka
30 June, 2016 31 December, 2014

(a) Cash in Hand (including Imprest Cash) 2,812,238 3,218,618
(b) Cash at Bank :
(i) Current & FC Account 186,824,492 190,573,819
(ii) FDR Account 31,484,499 28,446,802
221,121,229 222,239,239
Page 15

13. Issued Share Capital

This represents :
Amount in Taka
30 June, 2016 31 December, 2014

A. Authorized :
500,000,000 Ordinary Shares of Tk. 10/- each 5,000,000,000 5,000,000,000
41,000,000 Fully Convertible, 5% Dividend, Preference Shares of Tk. 100/- each 4,100,000,000 4,100,000,000
9,100,000,000 9,100,000,000
B. Issued, Subscribed and Paid-up :
51,775,750 shares of Tk. 10/- each fully paid-up in cash 517,757,500 517,757,500
297,226,087 Bonus Shares (2014: 278,833,505) of Tk. 10/- each 2,972,260,870 2,788,335,050
5,951,250 Shares of Tk. 10/- each issued in Exchange of
Shares of Beximco Infusions Ltd. 59,512,500 59,512,500
31,291,147 Shares issued on conversion of Preference Shares 312,911,470 312,911,470
3,862,442,340 3,678,516,520
The movement of Ordinary Shares during the Period ended June 30, 2016 is as follows :

Number of Shares Amount in Taka

Balance as on January 01, 2015 367,851,652 3,678,516,520
Bonus Shares issued during the period (for 2014) 18,392,582 183,925,820
Balance as on June 30, 2016 386,244,234 3,862,442,340
C. Composition of Shareholding of Ordinary Shares:

30 June, 2016 31 December, 2014
No. of shares % of Share Capital No. of shares % of Share Capital
Sponsors:

A S F Rahman 7,843,194 2.03 7,469,709 2.03
Salman F Rahman 7,861,555 2.04 7,487,196 2.04
Associates and Other Directors 35,218,844 9.12 33,414,339 9.08
Foreign Investors 140,338,026 36.33 93,038,941 25.29
ICB & Other Investors Account 62,590,222 16.20 55,940,961 15.21
General Public & Institutions 132,392,393 34.28 170,500,506 46.35
386,244,234 100 367,851,652 100
D. Distribution Schedule of Ordinary Shares:

Range of Holdings No. of Shareholders % of Shareholders Number of Shares % of Share Capital
In number of shares 30 June, 31 Dec, 30 June, 31 Dec, 30 June, 31 Dece, 30 June, 31 Dec,

2016 2014 2016 2014 2016 2014 2016 2014
1 to 499 50,793 65,544 75.05% 72.90% 6,768,689 8,240,906 1.75% 2.24%
500 to 5,000 14,375 20,786 21.24% 23.12% 20,930,046 30,918,582 5.42% 8.41%
5,001 to 10,000 1,184 1,753 1.75% 1.95% 8,441,882 12,555,227 2.19% 3.41%
10,001 to 20,000 613 930 0.91% 1.03% 8,685,273 13,111,006 2.25% 3.56%
20,001 to 30,000 201 281 0.30% 0.31% 5,007,247 6,909,593 1.30% 1.88%
30,001 to 40,000 86 128 0.13% 0.14% 3,010,665 4,498,146 0.78% 1.22%
40,001 to 50,000 82 102 0.12% 0.11% 3,756,886 4,660,402 0.97% 1.27%
50,001 to 100,000 150 165 0.22% 0.19% 10,505,997 12,172,549 2.72% 3.31%
100,001 to 1,000,000 167 191 0.25% 0.21% 47,746,257 50,601,331 12.36% 13.76%
Over 1,000,000 28 33 0.04% 0.04% 271,391,292 224,183,910 70.26% 60.94%
Total 67,679 89,913 100% 100% 386,244,234 367,851,652 100% 100%

Page 16

E. Market Price of Ordinary Shares :

The shares are listed with Dhaka, Chittagong and AIM of London Stock Exchanges. On 30.06.2016 each share was quoted at
Tk. 83.50 (on 31.12.2014 Tk. 58.70) in Dhaka Stock Exchange Ltd.; Tk. 83.00 (on 31.12.2014 Tk. 59.10) in Chittagong Stock
Exchange Ltd.; and GBP 0.2937 in London Stock Exchange (on 31.12.2014 GBP 0.1800).

F. Option on unissued Ordinary Shares :
There was no option on unissued shares as on 30.06.2016.
14. Excess of Issue Price over Face Value of GDRs

This represents the issue price of 28,175,750 GDRs at Tk. 2,244,080,670 net off face value of underlying shares against GDRs
and GDR issue expenses.

15. Long Term Borrowings - Net off Current Maturity (Secured)
This arrived at as follows :

Amount in Taka

30 June, 2016 31 December, 2014
(a) Project Loan - Local Banks - 608,901,223

(b) Project Loan - BHF Bank, Germany 469,408,422 -
(c ) Obligation Under Finance Leases 412,250,396 292,808,104
(d ) AB Bank 1,484,347,781 -
2,366,006,599 901,709,327

(a) Project Loan - Local Banks
This loan was sanctioned under the consortium arrangement of Janata Bank Ltd., Sonali Bank Ltd., Agrani Bank Ltd.,
Rupali Bank Ltd. and United Commercial Bank Ltd. for the US FDA standard oral solid dosage facility of the company.
Janata Bank is the lead bank to the consortium.

This Loan is secured against :

(i) First (registered mortgage) charge on paripassu basis with the participating banks on 1,113 decimals of land at Kathaldia,
Aushpara, Tongi of Gazipur along with the building and other constructions thereon; and

(ii) First paripassu charge by way of hypothecation on all assets of the company excepting the machineries and equipments
financed / to be financed by BHF Bank, Germany.

(iii) This Loan, carrying interest at 11.5% to 13% per annum, is repayable in quarterly installments ending by 2017.
(b) Project Loan - BHF Bank, Germany

This represents part of the foreign currency loan of US $ 51.559 million sanctioned by BHF-Bank Aktiengesellshaft,
Frankfurt, Germany to partially finance the machinery and equipment to be procured for expansion and diversification
project being implemented by the company.

The loan has exclusive first charge by way of hypothecation against the machinery and equipment being procured under
the finance. The loan carries interest @ 6 months USD LIBOR plus 2.25% per annum. The lender will receive commitment
fee @ 0.50% on the undisbursed portion of the loan.
Page 17

(c ) Obligation Under Finance Leases

Amount in Taka

30 June, 2016 31 December, 2014
Gross Finance Lease - minimum lease Liability:

Within one year 242,977,536 186,760,624
After one year 513,274,630 429,486,607
Total 756,252,166 616,247,231
Less future finance charges on finance lease liability (186,621,695) (195,948,111)

Present Value of Finance Lease liability 569,630,471 420,299,120

This consists of as follows:

Within one year 157,380,075 127,491,016
Within two to five years 412,250,396 292,808,104
Total Present Value of Finance Lease liability 569,630,471 420,299,120

16. Liability for Gratuity and WPPF & Welfare Funds

Liability for gratuity is the amount payable to the permanent employees at the time of separation from the company. The liability
for WPPF refers to the undistributed portion of Workers Profit Participation and Welfare Fund lying with the company.

Amount in Taka
(a) Gratuity Payable
30 June, 2016 31 December, 2014

Opening Balance at beginning of the period 337,652,786 284,163,669
Provisions during the period 128,134,755 66,915,861
465,787,541 351,079,530
Paid during the period (20,560,620) (13,426,744)

Closing balance at end of period 445,226,921 337,652,786

(b) Workers Profit Participation and Welfare Fund 538,971,538 403,869,732
984,198,459 741,522,518

17. Deferred Tax Liability

This arrived at as follows :

Addition during the period:

Deferred Tax on Assets (cost basis)-Note : 32 (26,356,152) 144,475,316
Deferred Tax on revalued amount 53,717,791 34,296,838
Closing balance at end of period 1,756,723,000 1,729,361,361
Page 18

18. (a) Short Term Borrowings (Secured)

This consists of :
Amount in Taka
30 June, 2016 31 December, 2014

Janata Bank Ltd. - Cash Credit-Hypothecation Loan 1,109,644,270 1,487,792,991
AB Bank, Principal Branch - 1,665,328,302
1,109,644,270 3,153,121,293
(b) Short Term Borrowings from AB Bank, Principal Branch as mentioned above, has subsequently been converted as Long
Term loan payable in 18 quarterly installments commencing from September 2016.
(c) Conversion of Short term loan into long term being a non-cash event, the net Increase/ Decrease in the Short/Long Term
borrowings as reported in the cash flow statement does not include such conversion.
19. Long Term Borrowings-Current Maturity (Secured)

This consists of as follows and is payable within next twelve months from the Balance Sheet date :

(a) Project Loan - Local Banks 444,621,118 536,347,056
(b) Project Loan - BHF Bank, Germany 41,054,236 -
(c ) Obligation Under Finance Leases 157,380,075 127,491,016
(d ) AB Bank 277,333,102 -
920,388,531 663,838,072

20. Creditors and Other Payables

This consists of :

Goods & Services 144,676,791 202,020,182
Provident Fund 248,809,046 124,323,489
Advance Against Export 9,097,700 3,618,784
Others 51,245,075 27,748,384
453,828,612 357,710,839
21. Accrued Expenses

This is unsecured, falling due within one year and consists of as follows :

For Expenses 85,051,382 60,155,328
Workers Profit Participation and Welfare Funds - current period expense 66,035,393 104,127,787
151,086,775 164,283,115
22. Income Tax Payable

This is arrived at as follows :

Opening Balance 368,339,391 325,685,371
Provision for the period 766,053,375 421,487,672
Short/(Excess) Provision for previous years (29,913,148) 15,295,172
1,104,479,618 762,468,215
AIT & Treasury deposits during the period (757,245,805) (394,128,824)
347,233,813 368,339,391
Page 19

23. Net Sales Revenue

Amount in Taka
January 2015- January-June January - Dec January - Dec
June 2016 2016 2015 2014


Local Sales 18,806,149,764 6,682,982,389 12,123,167,375 10,706,417,075
Export* 1,228,352,828 386,013,330 842,339,498 500,468,602
20,034,502,592 7,068,995,719 12,965,506,873 11,206,885,677

*Export equivalent US$ $15,809,891 $4,948,889 $10,861,002 $6,473,721
Sales represents:
Quantity
Product Category Unit January 2015- January- January - January -
Tablet, Capsule, Suppository & DPI Million pcs. 5,308.62 1,913.93 3,394.69 2,998.47
Liquid, Cream and Ointment,
Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution,
Injectable and Inhaler Million pcs. 121.46 45.80 75.66 70.72
Diet Care Products Pcs 16,069 10,157 5,912 -
Active Pharmaceutical Ingredients Kg 282,789 113,953 168,836 177,354
Liquid Nitrogen Liter 725,260 241,505 483,755 475,012
24. Cost of Goods Sold
This is made-up as follows :

Amount in Taka
January 2015- January- January - January -

Work-in-Process (Opening) 171,815,679 156,136,258 171,815,679 204,755,943

Materials Consumed (Note: 25) 8,002,141,393 2,822,057,040 5,180,084,353 4,498,531,078
Factory Overhead (Note: 26) 3,005,938,728 1,044,381,707 1,961,557,021 1,735,116,121
Total Manufacturing Cost 11,179,895,800 4,022,575,005 7,313,457,053 6,438,403,142
Work-in-Process (Closing) (194,155,965) (194,155,965) (156,136,258) (171,815,679)
Cost of Goods Manufactured 10,985,739,835 3,828,419,040 7,157,320,795 6,266,587,463
Finished Goods (Opening) 633,692,189 696,097,273 633,692,189 644,005,694
Finished Goods available 11,619,432,024 4,524,516,313 7,791,012,984 6,910,593,157
Cost of Physician Sample transferred to
Sample Stock (179,190,789) (49,442,782) (129,748,007) (174,206,645)
Finished Goods (Closing) (639,923,877) (639,923,877) (696,097,273) (633,692,189)
10,800,317,358 3,835,149,654 6,965,167,704 6,102,694,323
Page 20
Item wise quantity and value of Finished Goods Stock are as follows :

Stock as January 01, 2015 Unit Quantity Value (Tk.)
Tablet, Capsule, Suppository & DPI Million pcs. 426.64 389,211,055
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable and Inhaler Million pcs. 6.78 236,895,019
Active Pharmaceutical Ingredients Kg 2,450 7,586,115
633,692,189

Stock as June 30, 2016
Tablet, Capsule, Suppository & DPI Million pcs. 370.24 351,741,050
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable and Inhaler Million pcs. 6.85 257,318,388
Active Pharmaceutical Ingredients Kg 7,029 18,650,439
Diet Care Products Pcs 30,535 12,214,000
639,923,877
25. Materials Consumed
This is made-up as follows :

Amount in Taka
Opening Stock 1,062,093,352 1,374,684,313 1,062,093,352 1,228,275,639
Purchase 8,192,502,772 2,699,827,458 5,492,675,314 4,332,348,791
Closing Stock (1,252,454,731) (1,252,454,731) (1,374,684,313) (1,062,093,352)
8,002,141,393 2,822,057,040 5,180,084,353 4,498,531,078
26. Factory Overhead

Salary & Allowances 923,333,723 328,819,767 594,513,956 500,724,043
Repairs and Maintenance 247,729,698 87,928,385 159,801,313 104,500,367
Insurance Premium 22,309,704 9,166,206 13,143,498 12,514,466
Municipal Tax & Land Revenue 4,240,806 2,085,977 2,154,829 2,021,257
Advertisement 51,116 25,558 25,558 60,222
Registration & Renewal 18,495,348 6,208,730 12,286,618 10,631,435
Travelling & Conveyance 10,070,405 3,876,566 6,193,839 5,242,079
Entertainment 2,128,395 742,403 1,385,992 1,231,794
Research and Development 261,058,042 83,158,366 177,899,676 146,720,695
Printing & Stationery 23,889,555 7,742,008 16,147,547 13,914,877
Telephone, Internet & Postage 11,335,263 3,506,239 7,829,024 5,787,905
Toll Expense / (Income) 255,228,012 91,229,382 163,998,630 121,321,879
Electricity, Gas & Water 133,536,151 51,034,264 82,501,887 75,773,777
Training & Conference 8,900,920 1,072,225 7,828,695 5,046,880
Plant Certification and Regulatory Approvals 44,128,992 14,296,005 29,832,987 46,683,540
Depreciation 1,017,408,525 345,415,972 671,992,553 674,924,448
Other Expenses 22,094,073 8,073,654 14,020,419 8,016,457
3,005,938,728 1,044,381,707 1,961,557,021 1,735,116,121
(a) Salary and allowances include an amount of Tk.17,859,896 being Companys Contribution to provident fund for the period
January 2015 to June 2016.
(b) The value of imported stores and spares consumed during January 2015 to June 2016 Tk.138,743,197 is included in repairs
& maintenance. This also includes maintenance of office, premises, vehicles, building, machinery, equipment and other
infrastructures.
(c) Other expenses does not include any item exceeding 1% of total revenue.
Page 21
27. Administrative Expenses

Amount in Taka



Salary & Allowances 342,562,459 120,449,116 222,113,343 193,314,218
Rent 15,223,160 4,984,300 10,238,860 10,066,000
Registration & Renewals 5,135,570 1,764,573 3,370,997 3,061,050
Entertainment 7,288,932 2,377,334 4,911,598 4,063,944
Audit Fee 2,100,000 700,000 1,400,000 1,300,000
Legal & Consultancy 9,730,579 3,825,488 5,905,091 5,181,653
Company Secretarial, Regulatory-
Fee and AGM Expense 53,230,398 14,036,401 39,193,997 39,532,229
Advertisement 180,296 107,606 72,690 58,138
Depreciation 39,347,290 13,358,628 25,988,662 26,102,050
Remuneration to Independent Directors 580,000 260,000 320,000 140,000
Other Expenses 78,748,285 33,646,294 45,101,991 39,644,534
689,337,921 240,980,804 448,357,117 398,762,237
(a) Salary and allowances include an amount of Tk. 8,489,904 being Companys Contribution to provident fund for the period
January 2015 to June 2016. .
(b) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
(C) Remuneration is paid to the Independent Directors for attending Board and Audit Committee Meetings.
28. Selling, Marketing and Distribution Expenses


Salary & Allowances 1,363,985,413 452,028,002 911,957,411 748,845,866

Rent 69,104,942 27,790,444 41,314,498 32,948,068
Entertainment 46,440,194 16,523,966 29,916,228 24,724,155
Market Research & New Products 57,798,871 21,599,701 36,199,170 31,046,918
Insurance Premium 24,655,215 8,178,450 16,476,765 14,527,141
Sample Expense 258,105,667 92,822,945 165,282,722 150,637,854
Promotional Expenses 589,159,506 197,766,282 391,393,224 322,661,819
Literature/News Letter 179,138,483 69,074,607 110,063,876 93,314,746
Registration & Renewals 52,596,752 12,926,705 39,670,047 33,079,698
Export Insurance, Freight and C&F Expenses 63,647,883 18,050,363 45,597,520 38,333,120
Delivery Expense 543,786,599 203,307,856 340,478,743 296,368,010
Depreciation & Amortization 87,751,874 28,786,561 58,965,313 64,083,198
Other Expenses 27,551,642 8,639,297 18,912,345 16,065,656
4,086,594,010 1,385,890,432 2,700,703,578 2,287,252,281
(a) Salary and allowances include an amount of Tk. 32,629,498 being Companys Contribution to provident fund for the period
January 2015 to June 2016.
(b) Delivery expense includes distribution commission on local sales of Formulation and IV Fluid products paid to I & I Services
Ltd., a Related Party.
(c) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other
infrastructures.
(d) Sample expense includes VAT on sample and related despatch expense.
Page 22
29. Other Income

Amount in Taka

Interest on FDR & Short term Investment 404,847,333 100,525,928 304,321,405 489,970,647
Dividend Income 1,427,955 - 1,427,955 1,427,955
Royalty 10,634,016 - 10,634,016 24,763,177
Exchange Rate Fluctuation Gain / (Loss) (5,406,570) 379,817 (5,786,387) 1,452,991
Profit on Sale of Fixed Assets (Note 35) 1,156,189 74,852 1,081,337 3,556,877
412,658,923 100,980,597 311,678,326 521,171,647
30. Finance Cost

Interest on Working Capital Loan 588,417,111 166,656,402 421,760,709 391,510,508

Interest on Project / Consortium Loan 152,835,514 35,067,043 117,768,471 175,227,715

Interest on Lease Finance 149,565,303 71,030,756 78,534,547 64,812,955

Interest on Loan from PF, WPPF &
Welfare Fund 98,800,975 37,698,000 61,102,975 71,225,739
Other Bank Charges 40,563,498 10,759,966 29,803,532 21,538,046
1,030,182,401 321,212,167 708,970,234 724,314,963
31. Contribution To WPPF & Welfare Funds

This represents statutory contribution by the company as per Bangladesh Labour Act (amendment) 2013. The amount is
computed @ 5% of net profit before tax (but after charging such contribution).
32. Income Tax Expenses
This consists of as follows : Amount in Taka

(a) Current Tax
(i) Tax provision for current period 766,053,375 310,173,315 455,880,060 421,487,672
(ii) Short/(Excess) Provision for earlier year (29,913,148) - (29,913,148) 15,295,172
736,140,227 310,173,315 425,966,912 436,782,844
(b) Deferred Tax Expense /
(Income) (26,356,152) 16,765,213 (43,121,365) 144,475,316
709,784,075 326,938,528 382,845,547 581,258,160
33. Earnings Per Share (EPS)

(a) Earnings attributable to the
Ordinary Shareholders Tk. 2,948,053,854 993,769,338 1,954,284,516 1,528,297,573

(b) Weighted average number of
Ordinary Shares outstanding
during the period (Note 3.15) Nos. 386,244,234 386,244,234 386,244,234 386,244,234

Earnings Per Share (EPS) /
Adjusted EPS Tk. 7.63 2.57 5.06 3.96

Page 23
34. Related Party Disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties Nature of Transactions Value of Transaction Balance at Period End
(a) I & I Services Ltd. Local Delivery 21,290,407,357 1,430,821,670
Distribution Commission 322,248,539 -
(b) Bangladesh Export Import Co. Ltd. Short Term Investment & Interest there on 1,035,989,018 1,439,037,813

The Companies are subject to common control from same source.
35. Particulars of Disposal of Property, Plant and Equipment

The following assets were disposed off during the period ended 30 June 2016:
Particulars of Cost Accumulated Written Sales Price Profit / Mode of Name of
Assets Depreciation Down Value (Loss) Disposal Parties
Office Equipment 9,716,371 8,183,994 1,532,377 409,247 (1,123,130) Negotiation Various Individuals
Plant & Machinery 7,057,699 6,520,549 537,150 665,000 127,850 Negotiation Various Individuals
Furniture & Fixture 16,946,545 11,988,652 4,957,893 4,929,870 (28,023) Negotiation Various Individuals
Transport & Vehicle 3,931,886 2,531,542 1,400,344 3,579,836 2,179,492 Negotiation Various Individuals
Tk. 37,652,501 29,224,737 8,427,764 9,583,953 1,156,189
36. Payment / Perquisites to Managers and Directors
(a) The aggregate amounts paid to/ provided for the Managers and above of the company is disclosed below :

Amount in Taka
January 2015- June 2016
(18 Months)
Remuneration 295,224,430
Gratuity 10,779,325
Contribution to Provident Fund 12,831,690
Bonus 30,545,000
Medical 6,311,696
Others 32,899,347
388,591,488
(b) The above includes salary, allowances, and perquisites amounting Tk. 47,917,879 paid to the Managing Director.
(c) This also includes Tk. 580,000 paid to Independent Directors for attending Board, Audit Committee and other meetings.
(d) Excepting as stated above (c) no board meeting fee was paid to any directors.
(e) No amount of money was expended by the company for compensating any member of the board for special services
rendered.
37. Production Capacity and Utilization

Item Unit Production Capacity Actual Production Capacity Utilization

2015 2014 2015 2014 2015 2014
(12 months) (12 months) (12 months) (12 months)

Tablet, Capsule, Suppository & DPI Million Pcs 4,160.90 4,052.70 3,664.47 3,265.76 88.07% 80.58%
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable and Inhaler Million Pcs 94.46 94.03 75.90 72.37 80.35% 76.96%
Production does not include goods manufactured under contract manufacturing arrangement from third partys manufacturing
sites.
Page 24
38. Capital Expenditure Commitment
Companys committed capital expenditure relating to the procurement of Machinery and Equipment as on June 30, 2016 is
US$ 1,706,236.
39. Finance Lease Commitment

At 30 June 2016, the company has annual commitment under finance leases as set out below :

Leases expiring within 1 year 157,380,075
Leases expiring within 2-5 years (inclusive) 412,250,396
Tk. 569,630,471
40. Claim not Acknowledged as Debt

There is no claim against the company not acknowledged as debt as on 30 June 2016.
41. Un-availed Credit Facilities

The company has an un-availed foreign currency loan of US $ 44.988 million sanctioned by BHF-Bank Aktiengesellshaft,
Frankfurt, Germany to partially finance the machinery and equipment to be procured for expansion and diversification project
being implemented by the company. The loan shall have to be availed latest by July 2017 as per approval of Bangladesh
Investment Development Authority. However, the company has approached for extension of the same up to March 2018.

42. Payments Made in Foreign Currency :

Foreign Currency (Equivalent US$) Taka
Import of Machinery, Equipments & Spares 15,775,833 1,243,943,838
Import of Raw & Packing Material 58,323,719 4,594,289,751
Regulatory Fees & Other Expenses 11,304,585 883,443,526

No other expenses including royalty, technical expert and professional advisory fee, interest, etc. was incurred or paid in foreign
currencies except as stated above.

43. Foreign Exchange Earned / Received :

(a) Collection from Export Sales of US$ 16,200,450

(b) Royalty US$ 320,005
(c) Loan from BHF Bank, Germany US$ 6,571,052

44. Commission / Brokerage to selling agent :

No commission was incurred or paid to any sales agent nor any brokerage or discount other than conventional trade discount
was incurred or paid against sales.

45. Contingent Liability

The company has a contingent liability aggregating Tk. 150,788,789 against disputed income tax claims for the year 1999,
2007, 2008 and 2010. The company has filed Income Tax Reference cases with the High Court Division of the supreme court
against this claims.
There is also a disputed VAT claim aggregating Tk. 144,113,691 against the company. The Company own the verdict of the
Appellate Tribunal in its favour. The concerned authority filed appeal to the honorable High Court against this verdict. Additionally,
there are claims of custom duty aggregating Tk. 22,507,358 against the indemnity bond issued by the company in connection
with import of certain plant and machinery. The company has filed writ petitions against these claims.
If any liability arises on disposal of the cases, the company shall provide for such liability in the year of final disposal.
The company also has a contingent liability to the extent of Tk. 148,347,357 for third party corporate gurantee favoring Standard
Bank Ltd. Dhanmondi Branch for Beximco Engineering Limited.
Page 25
46. Events after The Reporting Period

On October 6, 2016 the Directors recommended 5% cash dividend (i.e. Tk. 0.5 per share) in addition to 10% cash dividend (i.e
Tk. 1.00 per share) and 5% Stock dividend (i.e. 5 shares for every 100 shares held) recommended on April 20, 2016.
Excepting above, no circumstances have arisen since the date of Statement of Financial Position which would require adjustment
to, or disclosure in, the financial statements or notes thereto.

47. Financial Risk Management

The management of company has overall responsibility for the establishment and oversight of the companys risk management
framework. Risk management policies, procedures and systems are reviewed regularly to reflect changes in market conditions
and the companys activities. The company has exposure to the following risks for its use of financial instruments.
Credit risk
Liquidity risk
Market risk
47. 01 Credit Risk

Credit risk is the risk of a financial loss to the company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations and arises principally from the companys receivables. Management has a credit
policy in place and exposure to credit risk is monitored on an ongoing basis. As at 30 June 2016 substantial part of
the receivables are those from its related company and subject to insignificant credit risk. Risk exposures from other
financial assets. i.e. Cash at bank and other external receivables are nominal.
47. 02 Liquidity Risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The
companys approach to managing liquidity ( cash and cash equivalents) is to ensure as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due under both normal and stressed conditions without incurring
unacceptable losses or risking damage to the companys reputation. Typically, the company ensures that it has sufficient
cash and cash equivalent to meet expected operational expenses including financial obligations through preparation of
the cash flow forecast with due consideration of time line of payment of the financial obligation and accordingly arrange
for sufficient liquidity/fund to make the expected payment within due date. In extreme stressed conditions the company
may get support from the related company in the form of short term financing.
47. 03 Market Risk
Market risk is the risk that any change in market prices such as foreign exchange rates and interest will affect the
companys income or the value of its holdings financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters.
(a) Currency risk
The company is exposed to currency risk on certain revenues and purchases such as revenue from foreign customers
and import of raw material, machineries and equipment. Majority of the companys foreign currency transactions are
denominated in USD and relate to procurement of raw materials, machineries and equipment from abroad. The company
have received foreign currency loan which shall be repaid in foreign currency.
(b) Interest rate risk
Interest rate risk is the risk that arises due to changes in interest rates on borrowing. The foreign currency loan is subject
to floating rates of interest. Local loans are, however, not significantly affected by fluctuations in interest rates. The
company has not entered into any type of derivative instrument in order to hedge interest rate risk as at the reporting
date.


Dhaka
6 October, 2016

Page 26

Audit Report June 2016

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Audit Report June 2016

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Independent Auditors Report

Report on the Financial Statements

Managements Responsibility for the Financial Statements

Report on Other Legal and Regulatory Requirements

Dhaka M.J. Abedin & Co.

Notes June 30, 2016 December 31, 2014

TOTAL ASSETS 31,148,907,975 29,000,525,961

Salman F Rahman Nazmul Hassan Ali Nawaz

Per our report of even date.

Notes January 2015 - January - January - January -

Page 3 Audit Report 2016 I 3

For the Year ended January - December 2014

The Notes are an integral part of the Financial Statements.

Salman F Rahman Nazmul Hassan Ali Nawaz

Dhaka M. J. Abedin & Co.

Cash Flows from Investing Activities :

The Notes are an integral part of the Financial Statements.

Dhaka M. J. Abedin & Co.

Audit Report 2016 I 5

Beximco Pharmaceuticals Limited

1.1 About the company

1.2 Nature of Business

2. Basis of Preparation of Financial Statements

2.1 Basis of Measurement

2.2 Statement of Compliance

2.3 Presentation of Financial Statements

The financial statements comprises of:

2.4 Reporting Period & Comparative Information

2.5 Authorisation for issue

2.6 Functional and Presentation Currency

2.7 Use of Estimates and Judgments

3. Significant Accounting Policies

3.1 Revenue Recognition

Revenue from sales is exclusive of VAT.

3.2 Property, Plant and Equipment

3.2.1 Recognition and Measurement

3.2.2 Maintenance Activities

Building and Other Construction 2 %- 10%

3.2.4 Retirements and Disposals

3.3 Intangible Assets

3.4 Leased Assets

3.5 Financial Instruments

3.5.1 Financial assets

3.5.1(a) Accounts Receivable

3.5.1(b) Cash and Cash Equivalents

3.5.1(c) Investment in Shares

3.5.2 Financial Liability

(b) Non-Financial Assets

3.9 Income Tax Expense

3.10 Interest Income

3.11 Borrowing Cost

3.12 Employee Benefits

The companys employee benefits include the following:

(a) Defined Contribution Plan (Provident Fund)

(b) Defined Benefit Plan (Gratuity)

(c) Short-term employee benefits

(d) Contribution to Workers Profit Participation and Welfare Funds

(e) Insurance Scheme

Employees of the company are covered under insurance schemes.

3.13 Share Premium

3.14 Proposed Dividend

3.15 Earnings per Share (EPS)

10 I Audit Report 2016

Current Period (January 2015 to June 2016)